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Mexican Settlement Model Gerardo Gamboa April,2013.

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Presentation on theme: "Mexican Settlement Model Gerardo Gamboa April,2013."— Presentation transcript:

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2 Mexican Settlement Model Gerardo Gamboa April,2013

3 Trading Mechanisms Exchanges Price Vendors Banking Commission Central Bank RegulatorsFinancial Participants Central Bank Infrastructure Facilitators Ministry of Finance Settlement Participants

4 BIS establishes Payment Systems Principles and Best Practices Enhance the Mexican financial markets History

5 1. Model 1: Real-time gross settlement 2. Model 2: Netting of funds 3. Model 3: Netting of securities and funds Bank for International Settlements DvP Models

6 $500 USD Bank A Bank B Transaction: 500 securities = $2,000 Bank C Borrow 100 R9b1k $500 USD Model 1 Real-Time Gross Settlement

7 Transaction: 500 securities = $2,000 Liquidity and real-time Efficiency Simplicity Model 1 Real-Time Gross Settlement

8 Transaction: 500 securities = $2,000 Liquidity and real-time Efficiency Simplicity Model 1 Liquidity and real-time Efficiency Simplicity Model 2 Model 2 Netting of Funds

9 A sells 100 X $500 to C A buys 100 X $500 to B A B C R9b1k 100 $500 USD Bank A Transaction: 500 securities = $2,000 Bank C Bank B Netted At the end of the settlement cycle Model 3 Netting of Securities and Funds

10 Model 1 Liquidity and real-time Efficiency Simplicity Model 2 Model 3 Liquidity and real-time Efficiency Simplicity Liquidity and real-time Efficiency Simplicity Model 3 Netting of Securities and Funds

11 Liquidity and real-time Efficiency Simplicity Model 1 Liquidity and real-time Efficiency Simplicity Model 2 Liquidity and real-time Efficiency Simplicity Liquidity and real-time Efficiency Simplicity Model 3 Model DALI Model

12 World-class Model 3 system Continuous settlement Attain organizational objectives Mexican Model

13 ISO Indeval Financial Protocol ISO Indeval Financial Protocol Match Engine Securities Management Funds Operations Securities Operations International Operations Central Bank Link Link CustodyCustody SafekeepingSafekeeping Risk Management Collateral Management Pre- settlement SettlementSettlement ClearingClearing Processes all transactions! Settlement System

14 Pre-settlementClearing Settlement To settle To clear Pending To settle Settlement System

15 Pre-settlementClearing Settlement 1,200$83,000 DvP Settlement System

16 FoP & Cash Deposits Cash Transfer Dali Netting Composite transactions Cash Debits Named Accounts Controlled Accounts Settlement System

17 Model 1Model 3 Real-TimeEfficiency Configurable pre-settlement module Objective functions Versatile Flexible Highly Efficient Features Included Hibrid

18 270 Clearing and settlement process times each and every business day 67,000 times each year Every settlement cycle being Mission critical Since the First Day of Dalí

19 Custody Number of Issues: 6,706 Value: USD 860 Billion Custoy value in % of GDP: 95% Settlement** Daily average :USD Billion Daily volume:29,830 Transactions Daily volumen vs GDP:4.2 daily DALÍ-SPEI conection Daily Amount of transfers: USD 58 Billion Settlement & Clearing process Daily (8:00-16:15hrs):270 per day Number of transaction and amount of the daily fist process: 1,400 USD 27 Billion Others Number of members: 110 Number of messages: in and out Dalí Statistics

20 USD 250 billion settled daily 52% reduction USD 130 billion Very conservative intraday opportunity cost USD 240 million in savings in just 18 months Dali Benefits

21 In just one minute: 22,000 data base records USD 75 billion settled 10,000 messages sent Dali Record

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23 Thank you April, 2013 Mexican Central Securities Depository


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